Through its website and daily newsletters, The Peak (a ZoomerMedia property) offers Canadians the news they need to understand business, tech, and other must-know stories.
In this dispatch, The Peak looks at the importance of making the most of your TFSA, how Black Friday has taken over the entire month of November in the retail sector, and why safety deposit boxes aren’t as safe as we think.
TFSA Must-Dos Before the End of the Year
As the year winds down, it’s a great time to make the most of your TFSA. First, log into your online Canada Revenue Agency account to check how much lifetime contribution room you have as of the end of 2023.
Next, try to hit the 2024 contribution limit of $7,000, plus any remaining lifetime room. That way, you’ll be able to make the most of your contribution space and start earning those tax-free gains as soon as possible. Just be careful not to over-contribute, since there’s a 1 per cent penalty on the excess amount for every month you’re over the limit. If you haven’t set up a successor for your TFSA yet, it’s worth doing that now too. It’ll make things easier for your loved ones if anything were to happen to you.
Lastly, think ahead for next year. The 2025 contribution limit is again $7,000, so now’s a good time to figure out how much you’ll need to contribute each payday. Setting up automatic contributions can help you stay on track without having to think about it. — Meera Raman
Black Friday is Turning Into Black November
The holiday shopping season is no longer just a sprint that starts on Black Friday – it’s become an extended race, with many retailers kicking off their Black Friday sales earlier than ever. While 48 per cent of Canadians believe actual Black Friday (the last Friday in November) is the most important shopping day, retailers are tempting shoppers to start earlier, with discounts rolling out in mid-November, or even as early as Nov. 1. Big retailers like Best Buy and Walmart are already in full Black Friday mode, offering deals weeks ahead of time. Meanwhile, there’s been a change in shopping habits: between 2019 and 2023, global retail media spending in the two weeks leading up to Black Friday increased by 17 per cent, while spending during Black Friday and Cyber Monday itself actually dropped by 13 per cent. With all these early deals, it’s easy to get swept up in the excitement. To avoid overspending, make a list of the gifts you truly need and stick to it. And if you’re eyeing something expensive, consider using tools like Honey or CamelCamelCamel to track prices and find the best deal. — MR
Safety Deposit Boxes Are Not So Safe
Safety deposit boxes aren’t as safe as we think, with banks offering little protection for lost or stolen items. A lot of people use them to store things like jewelry and important documents, but banks are still using pretty old-school systems to track who accesses your box. There’s usually a sign-in sheet, but at a TD bank branch, a bank employee had let people into boxes without signing the sheet – so, there’s a risk of theft that might not even be noticed. On top of that, banks generally won’t cover anything that’s lost or stolen from your safety deposit box. And unlike regular bank accounts, safety deposit boxes aren’t covered by the Canada Deposit Insurance Corporation. If you want protection, you’d need to buy separate insurance. As fewer customers use them, some banks, like National Bank of Canada, are even getting rid of them. If you’re still using a safety deposit box, it might be time to think about getting insurance or finding a safer option, like a home safe, for your valuables. — MR
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